Current Issues

ILLINOIS FORESTRY DEVELOPMENT FUND TRANSFERS AND IMPACTS TO FOREST LANDOWNERS

The Illinois Forestry Association’s position on this issue is that the taking of the 4% Harvest Fee as set forth in the Illinois Forestry Development Act of 1983 (the Act) for use other than the purposes set forth in the Act is illegal and is impairing efforts to maintain and improve forest habitats on private land [83% ownership].

Background

• The Act authorizes the collection of 4% of the money paid to Illinois forest landowners for timber harvested from their property [5 yr avg. - $970,000].
• The Act authorizes expenditures from these monies to all landowners for implementing forestry practices with IDNR approved management plans and for the operation of the Illinois Forestry Development Council
• Since 2004, over $2.0 million of 4% Harvest Fee tax revenue has been taken from the Forestry Development Fund for non forestry purposes
• An additional $778,000 is unaccounted for by IDNR fiscal officers
• The taking of these funds has negatively impacted the establishment, maintenance and improvement of the forest conditions in the state.
• Such action has angered the Illinois landowner constituents and caused a disincentive in making future investments in their forest land.
• IDNR fiscal procedures mismatch revenues and appropriations. Obligated funds are not accounted for resulting in the “appearance” of Fund surpluses
• IDNR Administrative Rules do not accurately reflect expenditures that are made with the Fund which underutilizes revenues
• State Comptroller fiscal guidelines do not account for obligations in the hundreds of thousands of dollars from the Fund
.
Recommendations

Preserve, protect and obligate all Forestry Development Funds for their intended purposes as defined in the amended IL Forestry Development Act (P.A. 96-217).

Fix the delivery system for these funds by addressing field staff shortfalls and revising the administrative rules to accurately reflect current practices and costs.

Revise fiscal protocols in the IDNR and Comptroller offices to accurately account for revenues, appropriations, expenditures and obligations relating to the Forestry Development Fund

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